Sedona Company set the following standard costs for one unit of its product for 2017. Direct material (30 Ibs. $2.60 per Ib.) Direct labor (20 hrs. $4.70 per hr.) $ 78.00 94.00 Factory variable overhead (20 hrs. $2.60 per hr.) Factory fixed overhead (20 hrs. 52.00 e$1.20 per hr.) 24.00 $248.00 Standard cost The $3.80 ($2.60 $1.20) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory's capacity of 61,000 units per month. The following monthly flexible budget information is also available. + Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 60% 55% 65% 33,550 36,600 732,000 39,650 793,000 671,000 $2,061,800 878,400 Variable overhead $1,744,600 $1,903,200 Fixed overhead 878,400 878,400 $2,623,000 $2,781,600 $2,940,200 Total overhead During the current month, the company operated at 55% of capacity, employees worked 652,000 hours, and the following actual overhead costs were incurred. $1,714,000 918,000 $2,632,000 Variable overhead costs Fixed overhead costs Total overhead costs AH Actual Hours SH Standard Hours AVR Actual Variable Rate SVR Standard Variable Rate SFR Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 60% of capacity Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances and classify each favorable or unfavorable as -At 55% of Operating Capacity- Standard DL Overhead Actual Fav./Unf. Variance Costs Applied Hours Results Variable overhead costs Fixed overhead costs Total overhead costs 1. Compute the variable overhead spending and efficiency variances. Flexible Budget Standard Cost (VOH applied) Actual Variable OH Cost